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Bill

SB 354

Insurance Information and Privacy Protection Act.

2025-2026 Regular Session Introduced by Monique Limón

SB 354 restricts California insurers' collection, use, and sharing of consumer personal data while requiring enhanced transparency and stricter consent requirements for privacy practices.

From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 4.) (July 1). Re-referred to Com. on APPR.
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WeVote Research Nonpartisan
Bill Summary · SB 354

Legislative bill overview

SB 354 establishes new privacy protections for consumers in California's insurance industry, restricting how insurers collect, use, and share personal data. The bill imposes stricter consent requirements and transparency obligations on insurance companies regarding consumer information practices.

Why is this important

Insurance companies accumulate extensive personal and financial data on millions of Californians, which they use for underwriting, pricing, and risk assessment. Stronger privacy rules directly affect what information insurers can legally access and how consumers can control their data, potentially impacting both insurance pricing practices and consumer privacy rights.

Potential points of contention

  • Impact on actuarial practices: Restrictions on data collection and use could limit insurers' ability to assess risk accurately, potentially leading to higher rates or reduced availability of coverage in certain markets
  • Compliance costs: New privacy requirements impose administrative and technology compliance burdens on insurance companies, which may be passed to consumers through higher premiums
  • Consumer access to insurance: Privacy limitations might make it harder for insurers to verify applicant information, potentially reducing insurance availability or increasing fraud risk

Compiled from official sources — confirm details with the bill’s official record.

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